What Happens If Your Arras Contract Expires Before You Buy?

An arras contract is one of the most important documents in a property purchase in Spain because it sets the conditions for moving from an accepted offer to the final sale.

It also usually includes a deadline for signing the purchase deed.

So what happens if that date arrives and the transaction is still not ready to complete?

The answer depends on why the delay happened, what type of arras was signed and whether both parties agree to extend the deadline.

What is an arras contract?

An arras contract is a private agreement between buyer and seller that confirms their commitment to complete the sale within an agreed period.

The buyer normally pays a deposit, while the seller agrees to reserve the property and not sell it to someone else during that period.

The contract should also state the final date by which the public deed of sale must be signed. This might be 60 or 90 days later, depending on what buyer and seller have agreed.

That date matters.

If the deadline passes without completion and no extension has been agreed, one of the parties may be considered to have breached the contract.

Can the deadline be extended?

Yes.

If both buyer and seller still want to complete the transaction, they can agree to extend the deadline.

This is often the most practical solution when the delay is temporary.

For example, the buyer’s mortgage may still be processing, additional property documents may be required or the seller may need more time before moving out.

The extension should be agreed by both parties and added formally to the contract, usually through an annex stating the new completion date.

A verbal agreement is not enough.

What happens if the buyer does not complete?

The consequences depend on the type of arras signed.

For arras penitenciales, which are common in Spanish property transactions and are regulated by Article 1454 of the Spanish Civil Code, the buyer generally loses the deposit if they decide not to proceed.

For example, if the buyer paid €20,000 in arras and then fails to complete within the agreed terms, they could lose that €20,000.

That is why the deadline should never be treated as a flexible target unless the contract says otherwise or an extension has been formally agreed.

What happens if the seller does not complete?

Under arras penitenciales, the seller generally has a different consequence.

If the seller fails to proceed with the sale, they may have to return double the deposit received.

So if the buyer paid €20,000, the seller could be required to return €40,000.

Again, the exact consequences depend on the wording and type of contract signed.

What if the mortgage is delayed or refused?

This is where many international buyers can run into problems.

If the buyer needs a mortgage and the bank does not approve it before the deadline, the buyer may still be exposed to losing the deposit unless the contract includes appropriate financing protection.

The contract can include a clause stating that if the purchase cannot proceed because financing is refused under agreed conditions, the buyer can recover the deposit without penalty.

That clause should be clear about the amount of financing required, the deadline and what evidence must be provided if the mortgage is refused.

This is particularly important for international buyers, as foreign income checks, translations and bank compliance can take longer than expected.

Why this matters in Barcelona

In Barcelona, delays can happen for many reasons: mortgage approval, registry corrections, missing documentation, inheritance issues, outstanding building paperwork or negotiations over the seller’s moving date.

The important point is not to wait until the deadline is about to expire.

If a delay becomes likely, it should be identified early and dealt with in writing.

Before signing an arras contract, buyers should understand exactly what the deadline means, what happens if financing is delayed and which circumstances allow the deposit to be returned.

A well-drafted arras contract should protect the transaction, not create an avoidable risk.

Source

This article is based on the Fotocasa article “¿Qué pasa si caduca el contrato de arras? El comprador y el vendedor pueden negociar una prórroga”, published on 4 August 2026. The article explains the consequences of missing the completion deadline, the possibility of extending the contract and the treatment of arras penitenciales under Article 1454 of the Spanish Civil Code.

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Disclaimer: The information provided in this article is for general guidance and orientational purposes only. We cannot guarantee that all details remain fully accurate or up-to-date, as local regulations and market conditions are subject to constant change. This content does not constitute formal legal, financial, or tax advice. For current and specific information, we recommend consulting a professional advisor. We are happy to put you in touch with a trusted local expert in Spain.